The missile defence systems market has been forecast to be dominated by the US over the coming years, with a 39% share of the global market. This is despite the US witnessing budget cuts in the recent past and looking likely to continue to do so in the future.
The term "missile defense system" broadly means a system that provides any missile defense against any missile type by any country. Any mechanism which can detect and then destroy a missile before it can cause any harm is called a missile defence system (MDS)
Missile defense systems are a type of missile defense intended to shield a country against incoming missiles, such as intercontinental ballistic missile (ICBMs) or other ballistic missiles. The United States, Russia, France, India and Israel have all developed missile defense systems.
High demand in the US is primarily driven by the five major missile defense programs: the Aegis Ballistic Missile Defense (BMD) System, the Ground-Based Mid-Course Defense System, the Terminal High-Altitude Air Defense System (THAAD), the Medium Extended Air Defense System and the European Phased Adaptive Approach (PAA) Defense System.
Asia and Europe are also expected to account for a significant proportion of the missile defense systems market, with shares of 33% and 16% respectively. This will be largely driven by the efforts of countries such as India, China and Russia to modernise their armed forces.
The Middle East, Latin America and Africa account for 9%, 2% and 1% of the missile defense systems expenditure respectively.
A significant number of countries are investing in the development of their domestic missile industries by establishing strategic alliances and technology transfer agreements with global missile manufacturers. In addition to improving the indigenous capabilities of a domestic defense firm, this provides the foreign original equipment manufacturers (OEM) with an opportunity to cater to a new market.
Furthermore, European countries still suffering from the effects of a recession, including France, Germany, Italy and the UK, are undertaking joint research and development projects in order to reduce the per-unit costs of a missile.
A number of countries worldwide are planning to increase their nuclear capabilities and missile strike ranges. Countries such as the US, India, Russia, Israel, China, Italy, Germany, France, Spain, Sweden and the UK are procuring long-range ICBMs which are capable of hitting targets at distances of up to 6,000 kilometres.
For more information on the missile defence systems market, see the latest research: Missile Defence Systems Market
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